SYLLABUS

UNIT-I

Nature and scope of micro economics, determinants of demand and law of demand, price, cross and income elasticity, law of supply, elasticity of supply, competitive equilibrium; consumer’s equilibrium- utility and indifference curve approaches.

UNIT-II

Short run and long run production functions, laws of returns; optimal input combination; classification of costs; short run and long run lost curves and their interrelationship; internal and external economies of scale, revenue curves; optimum size of the firm; factors affecting the optimum size, location of firms.

UNIT-III

Equilibrium of the firm and industry – perfect competition, monopoly, monopolistic competition, discriminating monopoly, aspects of non-price competition; oligopolistic behavior.

UNIT-IV

Characteristics of various factors of production; marginal productivity theory and modern theory of distribution; determination of rent; quasi rent; alternative theories of interest and wages.